FBI: San Gabriel man skips sentencing after admitting to $11 million in fraud

The FBI is seeking a San Gabriel man who failed to show up for his sentencing Monday after pleading guilty to defrauding dozens of families of more than $11 million.

David Kaup, 29, pleaded guilty in federal court to two counts of wire fraud April 9, FBI officials said in a written statement.

He admitted taking part in three separate schemes using the business names Lunden Investments, American Loans and Funding and First Mortgage West, officials said.

"Kaup admitted in his plea agreement that over a period of approximately five years, he defrauded more than 50 families out of more than $11 million," according to the FBI statement. "Many of these victims were working class families who sought Kaup's assistance in refinancing their homes."

Through Lunden Investments, authorities said, Kaup solicited more than $9 million from investors, telling them them he was using the money to fund commercial loans.

"Kaup admitted in his plea, however, that he instead lost approximately $9 million of the victims' money trading on the foreign currency exchange market," according to the FBI statement.

Through the other two companies, ALF and FMW, Kaup tricked homeowners into sending him money by promising to help them refinance their homes at below-market rates, officials said. He told the victims he needed an up-front payment to demonstrate that they were financially qualified, which would be returned to them upon approval or denial of their loans.

But instead, officials said, Kaup used the money to buy luxury items for himself and trade on the foreign currency exchange market.

While carrying out the schemes, Kaup used the aliases David Smith and David Martinez, according to the FBI.

He's described as 5 feet 11 inches tall, 190 pounds, with black hair and brown eyes. He's been known to work as disc jockey in the Los Angeles and Las Vegas areas using the moniker, "New Age Dave."

Anyone with information is asked to contact the FBI's Los Angeles office at 888-226-8443.